Combine sugar and warm water in large bowl. Sprinkle yeast over top; stir to dissolve yeast. Let stand until foamy, about 10 minutes.
Stir in 2 1/2 cups flour and salt. Beat with a wooden spoon about 3 minutes. Gradually beat in more flour, 1/2 cup at a time, to make a stiff dough.
Turn dough out onto floured work surface. Knead until smooth and elastic, about 5 to 10 minutes, adding more flour as needed to prevent sticking.
Place dough in lightly oiled bowl; turn to coat. Cover with clean towel. Let rise in warm place, away from drafts, until doubled in bulk, 1 to 1 1/2 hours.
Meanwhile, combine olives, lemon rind, oregano, thyme and olive oil in small bowl. Let stand at room temperature while dough rises.
Punch dough down. Turn out onto work surface. Divide in half. Flatten each half. Spread olive mixture over each, dividing evenly. Working with one half at a time, press olive mixture into dough; fold over and knead a few times to distribute evenly. Form into round or oval loaves. Place on greased baking sheets. Cover with clean towel. Let rise in warm place, away from drafts, until doubled in bulk, 45 to 60 minutes.
Preheat oven to hot (400°F).
Bake in preheated hot oven (400°F) for 30 minutes or until golden brown and loaves sound hollow when lightly tapped with fingers. Cool on wire rack. Serve warm or at room temperature.